[4] Addressing the lyrics of the song, Shapiro and Glebbeek go on to discuss the significance of sand within the track as a metaphor "for the temporary nature of existence, of time slipping away, how nothing can be taken for granted – love, loyalty, family bonds, [and] friendship".
[7] According to Maginnis, "The backwards-recorded guitar ... [creates] a dreamy atmosphere and [lends] the song its distinctive character", with fellow band members Mitch Mitchell and Noel Redding providing a "laid-back groove" with their "mid-tempo drum shuffle" and "concise bass line", respectively.
[8] Writing a five-star review of the album for Allmusic, Cub Koda has cited "Castles Made of Sand", along with "Little Wing", "One Rainy Wish" and "Bold as Love", as evidence of Jimi Hendrix's "remarkable growth and depth as a tunesmith, harnessing Curtis Mayfield soul guitar to Dylanesque lyrical imagery and Fuzz Face hyperactivity to produce yet another side to his grand psychedelic musical vision", describing it as a "beautiful, wistful ballad".
[9] Speaking about the track specifically, fellow Allmusic commentator Tom Maginnis cites "Castles Made of Sand" as evidence that, in writing material for The Experience's second album, "Hendrix [was] becoming a songwriter of depth, while unafraid to make use of the latest studio technology available to him".
[10][11] A live recording by funk rock band Red Hot Chili Peppers is included as the B-side to 1989 single "Taste the Pain" and later on 1994 compilation Out in L.A.. Tom Maginnis of AllMusic calls it a "largely faithful tribute where guitarist John Frusciante displays a considerable Hendrix influence".